WASHINGTON-If the Cellular Telecommunications & Internet Association hoped to prove to the consumer-advocate world that its voluntary code of conduct, which it officially unveiled Sept. 9, is an adequate response to criticism about lack of quality customer service, it was perhaps mistaken.
“This code of conduct might make for a good public relations gambit, but it doesn’t really get to the heart of the problems that plague cell-phone consumers,” said Sen. Charles Schumer (D-N.Y.). “Cell-phone service is sort of like the Wild West: There is almost no regulation and the companies need to stop ignoring calls to improve service. My cell-phone user bill of rights is comprehensive. . It’s time for the industry to embrace the reforms I am advocating once and for all.”
The consumer code of conduct, which RCR Wireless News first reported in February, was unveiled at a carefully staged press conference that was more similar to a CTIA trade show than the pizza-and-policy luncheon CTIA President Thomas Wheeler normally holds to talk to the press. That was probably a good thing, as not many of the telecom press corps was there since Michael Powell, chairman of the Federal Communications Commission, was speaking on Capitol Hill.
But even if most of those gathered were industry representatives, Wheeler went on with the show.
“The nation’s wireless carriers are adopting this code in order to ensure that this information is provided to consumers,” said Wheeler after extolling the virtues of competition in the wireless industry and how the role of government has changed because of that competition.
The distance between the consumer advocates and the wireless industry is one of perception. Consumer advocates wanted verifiable enforcement, the wireless industry doesn’t want anything that looks, smells or feels like regulation.
“Wireless carriers continue to chart new ground including the institution of self-regulatory programs for consumer information. Hopefully consumers and government agencies will recognize this new day and the need to find a new approach. Regulating only when such action proves to be insufficient and the industry unresponsive. Because the old top-down approach to regulation that works in a monopoly environment where costs were not as important to companies or consumers, is out the window and should be retired to the sidelines of a new competitive wireless world,” said Wheeler.
While Wheeler hailed the consumer code as a “floor not a ceiling,” CTIA Chairman Scott Ford, chief executive officer of Alltel Corp., admitted it is nothing new, but rather a compilation of industry best practices. This is a “compilation of best practices of informing our consumers that were available in the wireless industry,” said Ford.
Even though CTIA will annually award the seal to carriers that agree to the consumer code, it will be the individual carriers that certify whether they are in compliance, and Wheeler believes this is as it should be.
“This is new enforcement,” said Wheeler. “It is more pervasive. It is more ruthless,” because carriers will be monitoring each other and marketing against each other’s weaknesses.
Joining Wheeler on the dais were industry representatives and regulators from both the state and federal government. One of those, Sprint PCS President Len Lauer, responded to criticisms that the carriers had not agreed to print the phone number of the FCC on their bills, saying it would only confuse customers if there is more than one point of contact, and carriers want to help their subscribers. Critics charge the industry is afraid its FCC complaint statistics will increase if customers can easily turn to the government for help.
Across town, Powell said that as an increasing number of consumers embrace mobile phones, their expectations are bound to rise. He described consumer challenges facing wireless carriers as growing pains, warning that industry’s failure to police itself could invite government intervention.
RCR Wireless News Washington Bureau Chief Jeffrey Silva contributed to this report.
